Long/short equity hedge fund sector fell short in November

Long/short equity funds did not fully capitalise on November's equity market rally since many funds are maintaining more conservative positions in anticipation of year-end, according to Jordan Drachman, head of research for alternative beta strategies at Credit Suisse.

Long/short equity hedge funds underperformed most global equity markets as managers maintained relatively neutral exposure to equity markets and many began to lock in profits before the end of the year.

The Credit Suisse Long/Short Equity Liquid Index was down 0.75 per cent (net) for the month, while the Credit Suisse Global Macro Liquid Index finished up 2.23 per cent (net) in the same period.

The Liquid Alternative Beta Indices were formerly known as Alternative Index Replication or AIR and seek to replicate the aggregate return profiles of alternative investment strategies using liquid, tradable instruments.